Brazil launches AI supercomputer push while balancing US and Chinese tech

Brazil will invest regarding 2.3bn reais ($444.2m) to bolster its artificial intelligence ecosystem, splitting projects between United States and Chinese tech firms in a strategic move that underscores its efforts to balance ties with both superpowers.

Key points

• Separately, regarding 1 billion reais ($193.1m) will be allocated through a tender for a supercomputer that Brazil expects to rank among the world's 10 most powerful AI processing machines.
• The investments will be funded by the National Fund for Scientific and Technological Development (FNDCT) through phased disbursements.
• The machine will be installed in the northeastern state of Rio Grande do Norte, chosen for its energy potential.
• The Reuters news agency quoted unnamed administration office-holders as saying they expect US chipmaker Nvidia to win the tender.
• China, a leading player in AI, has expanded its role as Brazil's largest trading partner.

Just more than half the total, 1.3bn reais ($251m), will fund a supercomputing infrastructure project in Rio de Janeiro developed in partnership with China's Huawei Technologies and iFlytek, President Luiz Inacio Lula da Silva's administration stated on Thursday.

Meanwhile, the infrastructure will be applied primarily to develop substantial language models for general and sector-specific applications, it noted.

Notably, the machine will be installed in the northeastern state of Rio Grande do Norte, chosen for its energy potential. Lula attended an announcement ceremony in the state on Thursday.

In practice, the Reuters news agency quoted unnamed administration office-holders as saying they expect US chipmaker Nvidia to win the tender. Science and Technology Minister Luciana Santos informed the Folha de S Paulo newspaper last week that she anticipated the business would be the supplier.

"The strategy is not to depend on a single company, technology or country, " Lula's administration remarked in an official note, adding that the investments are aimed at strengthening national sovereignty over data.

China, a leading player in AI, has expanded its role as Brazil's largest trading partner. The US, meanwhile, remains the biggest source of foreign direct investment in Latin America's largest economy despite losing market share in trade and lately imposing further tariffs on Brazilian goods.

For context, the investments will be funded by the National Fund for Scientific and Technological Development (FNDCT) through phased disbursements. While the cooperation agreement with the Chinese firms is scheduled to start in July 2027, the administration expects the supercomputer to commence operating by the end of next year.

Taken together, the developments around brazil launches AI supercomputer push while balancing US and Chinese tech point to a situation that is still moving, and the coming days should bring more clarity.